Barry Callebaut : Global Reporting Initiative (GRI) Report

Barry Callebaut GRI Report 2020/21

GRI Report 2020 / 21

MATERIAL ISSUES -

GRI STANDARDS MAPPING

Barry Callebaut AG's 2020/2021 GRI Index is based on the	For further information please contact:
Global Reporting Initiative (GRI) Standards. GRI is the
world's leading standard for corporate sustainability report­	Taryn Ridley
ing (www.globalreporting.org). Through this GRI Index,	External Affairs Manager
together with the Forever Chocolate Progress Report and	Barry Callebaut AG
the Annual Report 2020/2021, Barry Callebaut reports in	Hardturmstrasse 181
accordance with the Core option of the GRI Standards.	CH-8005 Zurich
	Phone: [phone]
All material standards and indicators discussed are report-	Email: [e-mail]
ed as fully as the available data allow.

Relevant GRI Standard(s)

CHILD LABOR	408: Child Labor
	412: Human Rights Assessment
	414: Supplier Social Assessment
FORCED LABOR	409: Forced Labor
	412: Human Rights Assessment
POVERTY	203: Indirect Economic Impact
	413: Local Communities
FARMER INCOME	203: Indirect Economic Impact
	413: Local Communities
LOW YIELDS	203: Indirect Economic Impact
FUTURE COCOA SUPPLY	201: Economic Performance
	203: Indirect Economic Impact
	304: Biodiversity
TRACEABILITY	308: Supplier Environmental Assessment
	414: Supplier Social Assessment
HEALTH & SAFETY	403: Occupational Health and Safety
	414: Supplier Social Assessment
TALENT	404: Training and Education
	405: Diversity and Equal Opportunity
EMPLOYEE ENGAGEMENT	401: Employment
CLIMATE CHANGE	302: Energy
	305: Emissions
DEFORESTATION	304: Biodiversity
	308: Supplier Environmental Assessment
CO2 EMISSIONS	302: Energy
	305: Emissions
AIR POLLUTION	305: Emissions
SOIL DEGRADATION	304: Biodiversity
WATER	303: Water
COMPLIANCE	205: Anti-Corruption
	206: Anti-Competitive Behavior
	307: Environmental Compliance

410: Security Practices

415: Public Policy

419: Socio-Economic Compliance

Forever Chocolate Progress Report 2020/21

Barry Callebaut GRI Report 2020/21

GRI 102: GENERAL DISCLOSURES

Organizational Profile

Disclosure	Disclosure title
number
102-1	Name of the organization
102-2	Activities, brands, products, and
	services
102-3	Location of headquarters
102-4	Location of operations
102-5	Nature of ownership and legal
	form
102-6	Markets served
102-7	Scale of the organization
102-8	Information on employees and
	other workers

102-9

Supply chain

Answer

Barry Callebaut AG

Barry Callebaut is the world's leading supplier of high-quality chocolate and cocoa products, with more than 12,783 employees operating out of more than 40 countries. Its main brands are: Barry Callebaut, Callebaut, Cacao Barry, Carma and Mona Lisa. For further information: www.barry-callebaut.com/en/brands

Barry Callebaut AG, Hardturmstrasse 181, 8005 Zurich, Switzerland

www.barry-callebaut.com/en/contact

Barry Callebaut AG ("The Company") was incorporated on December 13, 1994, under Swiss law, having its head office in Zurich, Switzerland, at Hardturmstrasse 181, 8005 Zurich. Barry Callebaut AG is registered in Switzerland and has been listed on the SIX Swiss Exchange (BARN, ISIN Number: CH0009002962) since 1998. As at August 31, 2021, the market capitalization based on issued shares was CHF 12,811 million (August 31, 2020: CHF 10,978 million).

The significant shareholders of the Company are listed in Note 5.4 to the Consolidated Financial Statements, with Jacobs Holding AG as the reference shareholder holding 30.1% of the issued share capital (August 31, 2020: 40.1%).

Barry Callebaut offers its products in 137 countries across the following regions: Europe, Americas, Asia Pacific. The company serves clients in the Food & Beverage industry. Barry Callebaut serves the entire industry, from food manufacturers to artisans and professional users of chocolate such as chocolatiers, pastry chefs or bakers; the Company also supplies products for vending machines.

As of August 31, 2021, the total number of employees was 12,783 and Barry Callebaut operated 64 factories. The annual sales in fiscal year 2020/21 (ended August 31, 2021) amounted to CHF 7.2 billion. Barry Callebaut's market capitalization based on issued shares was CHF 12.8 billion and the debt to equity ratio was 47,8%. In fiscal year 2020/21, Barry Callebaut achieved healthy volume growth of +4.6% to 2,191,572 tonnes.

At the end of the fiscal year 2020/21, Barry Callebaut had 12,783 employees. The Company had: 3,651 permanent and

179 temporary female employees; 8,651 permanent and 299 temporary male employees, 3 employees without gender identification. Employees in EMEA: 5,441 permanent and 331 temporary; Americas: 3,625 permanent and 67 temporary; Asia: 1,883 permanent and 38 temporary; Africa: 1,356 permanent and 42 temporary; 3,455 full-time and 375 part-time female employees; 8,760 full-time and 190 part-time male employees; 3 full-time employees without gender identification.

The following types of workers perform organization activities: Consultants, Agency Temps, Members of the Board of Directors, Contractors, Trainees, Volunteers / Students. Information on employees is collected in Barry Callebaut's internal HR system (Global HRIS System Success Factors). As from September 2018, the Company collects granular data on employees in the Barry Callebaut's Leadership Academy. At the end of FY20/21, 40 employees were assigned to the Barry Callebaut's Leadership Academy.

Barry Callebaut is fully vertically integrated along the entire value chain. The Company sources cocoa directly from smallholder farmers in Côte d'Ivoire, Ghana, Cameroon, Indonesia and Brazil as well as from third-party suppliers from the main cocoa-producing countries. Cocoa beans and chocolate are processed or produced in 64 factories operated directly by Barry Callebaut. Its main brands are Barry Callebaut, Bensdorp, Callebaut, Cacao Barry, Carma, Caprimo, Chocovic, La Morella Nuts, Le Royal, Mona Lisa, SICAO, Van Leer, Van Houten Professional and Van Houten Drinks.

102-10 Significant changes to the

organization and its supply chain

102-11	Precautionary principles or
	approach

102-12

External initiatives

• In the fiscal year 2020/21, the significant changes to the organization's size and structure include the following:
• • New brand Cabosse Naturals offers pure cacaofruit ingredients
  • Opening of new office and CHOCOLATE ACADEMYTM Center in Shenzhen, China
  • La Morella Nuts expands globally and opens Center of Expertise
  • Barry Callebaut launches #oneBC, its Diversity & Inclusion Strategy
  • Barry Callebaut recognized as Supplier Engagement Leader by CDP
  • Opening of new chocolate factory in Baramati - India
  • Opening of dedicated dairy-free factory in Norderstedt, Germany
  • Van Houten launches first-ever ruby chocolate drink powder
  • Cacao Barry launches WholeFruit EvocaoTM chocolate
  • Barry Callebaut to acquire Europe Chocolate Company in Belgium
  • Outsourcing agreement with Atlantic Stark in Serbia signed
  • Barry Callebaut to open factory in Kaliningrad, Russia
  • Barry Callebaut is recognized as a leader in managing ESG risks for the third consecutive year by Sustainalytics.

Barry Callebaut considered the following references in development of the HACCP (Hazard Analysis and Critical Control Point) principles: Guidance on Food Allergen Management for Food Manufacturers Food Drink Europe (2013), Global Standard for Food Safety: Guidelines for Allergen Management (2014), FARRP - International Regulatory Chart (2015), European Food Safety Authority, FAO/WHO Food Standards. Codex Alimentarius. General Standard for the Labelling of Prepackaged Foods (1991), Guidance on Allergen Management and Consumer Information. Best Practice Guidance

on Managing Food Allergens with Particular Reference to Avoiding Cross-Contamination and Using Appropriate Advisory Labelling, FSA (2006).

Among the main external initiatives which Barry Callebaut endorses and supports are: the Dutch Sustainable Trade Initiative (IDH), the German Development Finance Institution (DEG), Fairtrade, ILO Impact Insurance Facility, International Cocoa Initiative, International Finance Corporation (IFC), Jacobs Foundation, Livelihoods Fund for Family Farming, Mastercard Fund for Rural Prosperity, Opportunity International, One Planet Business for Biodiversity (OP2B), Rainforest Alliance, The Sustainable Agriculture Initiative Platform, United Nations Global Compact, UTZ Digital ICS, World Business Council for Sustainable Development (WBCSD) and the International Cocoa Initiative (ICI).

Forever Chocolate Progress Report 2020/21

Barry Callebaut GRI Report 2020/21

Disclosure	Disclosure title
number
102-13	Membership in associations

Strategy

102-14	Statement from senior
	decision-maker

Ethics and Integrity

102-16	Values, principles, standards,
	and norms of behavior

Answer

Cocoa relevant

ABICAB, AIDEPIT, AIPC, Alliance7, Amcham, Ania, Aschoko/Confimex, BDSI, BLL & BVE, Belgian Confectionary Association (Choprabisco), Biscosuise, Bundesverband der Deutschen Süßwarenindustrie, China National Candy Association, Chocolate and Cocoa Association of Japan, Chocosuisse, Cocoa Association of Asia, Cocoa Merchants Association of America (CMAA), EFOSZ, European Cocoa Association (ECA), European Confectionary Association (Caobisco), Federalimentare, FAARP, Federation of Malaysian Manufacturers, FEVIA, FDP, FIAL, FNL, GAPMM Indonesia, GEPEX, Hunbisco, Index Nuovo LeÓn, International Cocoa Initiative, International Cocoa Organization, INC International Nut and Dried Food, Indonesia Cocoa Association, Malaysia Cocoa Board, National Confectioners Association, NCA, One Planet for Business for Biodiversity (OP2B), Polbisco, Produlce, SGLH, Singapore Manufacturing Federation, SVLQ, SVG, VBZ, Unione Ind. LI VCO, World Cocoa Foundation.

Non-cocoa relevant

Bee friendly, Bonsucro, Coalition for Sustainable Livelihoods, AIM-Progress, Sustainable Vanilla Initiative, Roundtable on Sustainable Palm Oil (RSPO), Roundtable on Sustainable Coconut and Coconut Oil, Sustainable Agriculture Initiative Platform (SAI), ProTerra Foundation and Stakeholder Council, SOS Cerrado, Supplier Ethical Data Exchange (Sedex), Cool Farm Alliance, Palm Oil Network Switzerland, ASACAM, North American Sustainable Palm Oil Network (NASPON), China Alliance for Sustainable Palm Oil, High Carbon Stock Approach (HSCA)

Industry

World Business Council on Sustainable Development (WBCSD)

Message from the CEO

It is my true pleasure to share with you Barry Callebaut's fifth Forever Chocolate Progress Report. This is by all means a special report, as we are halfway through our plan to make sustainable chocolate the norm by 2025. What better moment to take stock of our progress to date, capture our learnings, and start planning what further actions will be required by 2025, in order to reach our targets?

Looking at the progress we made since 2016, I am very proud and impressed by our achievements so far. In the first five years of Forever Chocolate, we have reduced our carbon intensity per tonne of product by more than -17%, lifted 214,584 cocoa farmers (+50%) in our supply chain out of extreme poverty - on a trajectory towards a living income - and reached 43% of the cocoa and chocolate products sold containing sustainably sourced cocoa. In addition, through the scaling of our traceability and sourcing efforts, we reduced the Land Use Change (LUC) impact from cocoa cultivation by over -10%. While there is still work to be done, these results signify tangible impact on the ground. This was also recognized by Sustainalytics, who ranked Barry Callebaut in the top 3 out of 205 food companies for the third consecutive year in terms of managing the sustainability risks in our supply chain.

In order to continue to progress against our targets, we focus on strategic partnerships with societal and industry stakehold- ers, aiming to scale our impact on the ground. Ultimately, if we want to make sustainable chocolate the norm, our actions have to extend beyond Barry Callebaut - creating a movement of cocoa farming communities, industry, governments, and societal stakeholders. This is why in fiscal year 2020/21, we focused extensively on scaling and partnering for change. We have teamed up with experts from Embode to implement our new approach to tackling child labor, which sets clear internal milestones to guide planning, implementation, and stakeholder engagement. By working with EcoVision Lab, part of the Swiss Federal Institute of Technology in Zurich, we continued to put digital innovations in place and developed a publicly available, industry-first High Carbon Stock (HCS) map that identifies forests with high conservation and carbon-capturing value.

Next to these innovative solutions, public policy has a crucial role to play in order to create an enabling environment for systemic change in the chocolate industry. In the past year we have participated, through trade associations and multi stakeholder platforms, in constructive dialogue between cocoa origin governments and cocoa consuming regions. Public policy with regards to traceability, deforestation and human rights due diligence, will be important additions to the common objective of achieving a sustainable cocoa supply chain.

All these efforts and accomplishments were made possible only with the expertise, dedication and hard work of all Barry

Callebaut colleagues, our partners and our customers, who are embracing the sustainability­pathway reflected in our Forever Chocolate movement. I would like to thank everyone who is a part of the movement to make sustainable chocolate the norm, for their continued passion and commitment.

I warmly invite other stakeholders to join us on this journey, further partnering for scale and impact.

Peter Boone

CEO of Barry Callebaut

Barry Callebaut values are customer focus, entrepreneurship, team spirit, passion, and integrity. The Barry Callebaut Code of Conduct reflects these values and their belief that the best working environment is one built on mutual respect and trust.

Barry Callebaut developed its Code of Conduct in 2002 (updates in 2011, 2013 and 2016). The document was approved by the Executive Committee and signed by the CEO. The Chairman of the Audit, Finance, Risk, Quality & Compliance Committee (AFRQCC) is informed about compliance cases and completion of training by Executive Committee members. The importance of this document and its implementation is amplified by the fact that the Chief HR Officer is a member of the AFRQCC.

All employees of Barry Callebaut sign the Code of Conduct; the document is available in 9 languages on the website. Barry Callebaut's business partners receive the Supplier Code. The Supplier Code includes a reference to their values.

Forever Chocolate Progress Report 2020/21

Barry Callebaut GRI Report 2020/21

Governance

Disclosure	Disclosure title		Answer
number
102-18	Governance structure		As of November 2, 2016, the Barry Callebaut Group is organized into different regions: EMEA (Europe, Middle East, Africa),
			Americas and Asia Pacific. The globally managed Global Cocoa is, like a Region, reported as a separate segment. Barry
			Callebaut's business can also be separated into three different Product Groups: Food Manufacturers Products, Gourmet &
			Specialties Products, and Cocoa Products.
			Committees of the highest governance body include the Board of Directors; the Audit, Finance, Risk, Quality & Compliance
			Committee; the Nomination & Compensation Committee; and the Internal Audit.
			The sustainability agenda is strongly driven by Barry Callebaut's top management. The cross-functional Sustainability
			Steering Committee is chaired by the CEO and includes all members of the Executive Committee and top managers of Barry
			Callebaut. The Committee meets quarterly to review sustainability strategy and progress.

Stakeholder Engagement

102-40	List of stakeholder groups
102-42	Identifying and selecting
	stakeholders
102-43	Stakeholder engagement

102-44

Key topics and concerns raised

Barry Callebaut is a vertically integrated company and therefore its stakeholders include all parties along the cocoa value and supply chain: farmers, suppliers, governments and donors. Besides the customers, the other major stakeholder groups are employees, investors, media, industry associations / platforms, governments and NGOs.

Barry Callebaut engages with all identified stakeholder groups to drive a shared vision for the future of the cocoa industry and at the same time to respond to challenges shared with the identified stakeholder groups.

Barry Callebaut's values represent a mindset and way of doing business that is committed to generating sustainable earnings over time and creating long-term value for all stakeholders. Barry Callebaut is dedicated to running all operations with transparency and integrity, which includes reporting on Environmental, Social and Governance (ESG) management and risks. In 2021, Barry Callebaut hosted its first dedicated ESG Investor Roadshow and Governance Roadshow to present and discuss ESG topics with interested investors.

In 2015, Barry Callebaut identified issues material for the sustainability of its business and the context in which the Company operates. An updated materiality assessment was conducted through an online survey in spring 2018. The latest materiality assessment was published in April, 2021.

The survey was sent to both internal and external stakeholders and responses from the following stakeholder groups were received and taken into consideration: employees, investors, NGOs, customers, suppliers, industry platforms, donors, implementing partners, analysts, IGOs, and others.

Barry Callebaut maintains a regular dialogue with stakeholders through both participation in external activities (like workshops and conferences) as well as through organization of own internal activities (such as feedback sessions).

Together with the stakeholders, a number of topics were identified in 2015 and re-confirmed in 2018 and 2021:

Farmer productivity, poverty alleviation and farmer livelihood, farmer access to finance, child labor, living income, climate change and greenhouse gas emissions, deforestation and forest restoration and supply chain traceability. All of the topics are addressed by Barry Callebaut's Forever Chocolate Strategy and its ambitious targets: Eradicate child labor from Barry Callebaut's supply chain; Lift more than 500,000 farmers out of poverty; Become carbon- and forest-positive; Have 100% sustainable ingredients in all of Barry Callebaut's products.

Reporting Practice

102-45	Entities included in the		See Annual (Financial) Report 2020/21:
	consolidated financial	www.barry-callebaut.com/en/group/investors/results-publications
	statements
102-46	Defining report content and		This report represents a holistic materiality universe and sustainability issues that are at the core of the food and beverage
	topic boundaries		industry. Barry Callebaut aims for continuous and transparent reporting on its sustainability activities and achievements.
		To further enhance and improve the monitoring and evaluation of its activities, annual sustainability results are verified by an
		external third party.

The Company engaged all stakeholder groups to contribute to its materiality matrix. The materiality matrix therefore represents a set of topics relevant for the entire stakeholder universe of Barry Callebaut.

Barry Callebaut takes into consideration its size and reach. With operations in more than 40 countries and more than 12,500 employees, Barry Callebaut is a major player in the cocoa and chocolate industry. With operations to source cocoa across the globe, while growing our direct sourcing capacity, Barry Callebaut's presence in cocoa origin producing countries enables us to source the largest volume of cocoa, and sustainable cocoa, in the world. Non-cocoa ingredients are sourced from third-party suppliers who are actively engaging on sustainability issues. This includes both structured engagements such as our VisionDairy Charter as well as project work on a variety of ingredients, including for example cane sugar.

Forever Chocolate Progress Report 2020/21

Barry Callebaut GRI Report 2020/21

Disclosure	Disclosure title
number
102-47	List of material topics

102-48	Restatements of information
102-49	Changes in reporting
102-50	Reporting period
102-51	Date of most recent report
102-52	Reporting cycle
102-53	Contact point for questions
	regarding the report
102-54	Claims of reporting in
	accordance with the GRI
	Standards
102-55	GRI content index
102-56	External assurance

Answer

The following topics were identified through a rigorous materiality assessment, undertaken in April 2021:

Farmer productivity, poverty alleviation and farmer livelihood, farmer access to finance, child labor, living income, climate change and greenhouse gas emissions, deforestation and forest restoration and supply chain traceability. All of the topics are addressed by Barry Callebaut's Forever Chocolate Strategy and its ambitious targets: Eradicate child labor from Barry Callebaut's supply chain; Lift more than 500,000 farmers out of poverty; Become carbon- and forest-positive; Have 100% sustainable ingredients in all of Barry Callebaut's products.

Compliance, community engagement, women's empowerment, health and safety, talent and diversity, employee well-being, health, nutrition and clean label, water stewardship, waste and packaging are topics not directly identified in Barry Callebaut's materiality matrix. They are nevertheless included in the GRI Report to paint a full picture of the sustainability activities. They co-define how Barry Callebaut lives its corporate values, serves customers, and honors its commitments.

None

None

September 1, 2020-August 31, 2021

GRI Report 2019/20 (December 2020)

Annual Report (November 2021)

Annual

Taryn Ridley, External Affairs Manager

Phone. [phone]

Email. [e-mail]

This report has been prepared in accordance with the GRI Standards: Core option.

See individual GRI Disclosures

An assurance report and statement is publicly available online via www.barry-callebaut.com The auditing partner, PwC UK, audited the Forever Chocolate Progress Report 2020/21.

GRI 103: MANAGEMENT APPROACH

Management Approach

103-1	Explanation of the material		Child labor
	topic and its boundary		Among the most prevalent types of child labor, occurring primarily on family farms, is that of children working at too young
			an age or working in hazardous conditions. There are still an estimated 1.56 million children in Côte d'Ivoire and Ghana
			involved in child labor for cocoa cultivation. Barry Callebaut manages child labor (or human rights violations) in its own
			operations. The risk is much lower in factory production as it is regulated both by laws and by internal means.
			Farmer productivity, poverty alleviation and farmer livelihood, farmer access to finance
			As a result of low yields due to poor farming practices, aging trees and limited access to inputs such as fertilizer and planting
			materials, the average cocoa farmer's income is below the World Bank's extreme poverty line of USD 1.90/day. Such
		low income makes it impossible for farmers to invest in their farms, or to hire staff to work the fields. Barry Callebaut works
		with farmers across major cocoa-producing regions to ensure the future of cocoa supply and improve their livelihoods.
		Barry Callebaut provides a variety of farm services to farmers and works on topics such as income diversification.
		The Company is also working towards ensuring traceability of its Cocoa Horizons product and partners with third-party
		certifications.
		Climate change, greenhouse gas emissions, forest restoration and biodiversity
		Deforestation is one of the biggest causes of global warming. It emits carbon dioxide into the atmosphere through the "slash
		and burn" method for clearing forests, and at the same time reduces the number of trees that can absorb carbon dioxide.
		Further down, considerable amounts of CO2 emissions are emitted through chocolate production itself. Therefore, Barry
		Callebaut has a holistic approach towards managing its CO2 footprint and understanding the impacts of climate change.
		Talent, diversity, employee engagement, and health and safety
		Attracting the best talents from across the world is the basis for Barry Callebaut's growth and prosperity. The Company offers
		a safe, engaging and collaborative workplace for its people, as well as the development and career growth opportunities
		they require to deploy their full potential. Barry Callebaut is fully committed to a working environment where business is
		conducted with integrity and in a manner where employees feel fully engaged, supported, and safe from injuries.
103-2	The management approach		In order to deliver on its Forever Chocolate targets, Barry Callebaut set up a program structure to ensure focus and alignment
	and its components		around the activities it needs to perform. The Forever Chocolate program is supported by the full Executive Committee, who
			sit in the Steering Committee together with key stakeholders. Barry Callebaut's Chief Sustainability Officer is an Executive
			Committee member who sponsors the program, with managerial leadership by the VP, Head of Sustainability.

Forever Chocolate Progress Report 2020/21